Even if your spouse doesn’t want to leave the house to you, he or she may not have a choice. In community property states, a spouse automatically owns half of everything you earned during the marriage. Other states say a surviving spouse or children have a right to one-quarter to one-half of your estate no matter what your Will says.

In most cases, married couples own their homes as tenants by the entirety, meaning that if one spouse dies, the other automatically inherits the house without having to go to probate court. If you live in a community property state, any credit-card debt your deceased spouse owed is now your responsibility, even if the account was in his or her name only.

If you want to leave your house to your children, it is a good idea to let the children inherit rather than to put them on the title now. There are several reasons. If the child is on the title:

• Depending on the laws of your state, your child could force the sale of your house to gain his or her “share” of the property while you’re still alive.
• If you want to sell or refinance your house, your child may have to agree because he or she is an owner.
• If the child sells the house after you die, he or she will pay capital gains sales tax on the difference between what you paid for the house and what it sells for -- potentially a large amount. If he or she inherits the property, the tax is paid on the difference between what the house was worth when you died and what it sells for after your death. Assuming the house is sold soon after you die, the tax figure would be much lower if they inherit.
• A dishonest child may be able to cash the equity out of the house without your knowledge.

To avoid having a house go through probate, you can place your real estate in a living trust, with an attorney’s help. A trust lets you refinance, sell or live in your house while you’re alive, then passes the house on to your heirs after you die. If you don’t already have a Will, it is a good idea to get one.

Retirement income
Will you outlive your retirement savings? How much will your expenses be? To find out, check the calculators at http://www.choosetosave.org. The longer you put off retirement, the longer your savings will last, and the more equity you will have in your home.

Long-term care expenses
If you or your spouse can no longer live at home, you’ll find that long-term care costs range from $55,000 to $100,000 in urban areas per year, with home care agency rates averaging from $18 for a home health aide to $37 or more for a licensed practical nurse. Consider purchasing a long-term care insurance plan to protect your assets. Read about long-term care at the American Association of Retired Persons (AARP) Web site, http://research.aarp.org.

Buying a retirement home
After your children leave the nest, you may decide to move to a single-story home or a retirement community. If you’ve lived in your home for two of the past five years, the first $250,000 (for singles) and $500,000 (for marrieds) of profit from your home sale is tax free. Instead of tying up that profit in your retirement home, you may want to consider setting it aside for emergencies and using a mortgage to purchase your next home.

House rich, cash poor
If you’ve got a home that’s valuable and you need monthly income but don’t want to sell your home, you may want to consider a reverse mortgage. A reverse mortgage pays you something from the equity in your home every month and you can continue to live in your home until your death. View a list of Reverse Mortgage Loan Myths.

Get a Will
One of the most important gifts you can give your family is to make a Will. Having your wishes down on paper relieves your heirs of many difficult and stressful decisions. They don't want to guess what you wanted, and without a Will costs and time needed for probate go up. Put your properties into a living trust so they will pass automatically to your heirs. And to emphasize the point — if you don’t already have a Will, get one.